G20 Energy Transition Working Group Meeting - AIR Spotlight Discussion

Our daily feature, AIR Spotlight, is a discussion platform aired on All India Radio News that brings together esteemed panelists to deliberate on issues of national and international importance. This program can prove to be quite beneficial for those preparing for the IAS exam .

Today, we delve into the topic of: The G20 Energy Transition Working Group Meeting.

Panelists :

1. Anil Razdhan, Ex-Secretary of Energy
2. S. Rangabashyam, AIR News Correspondent

Background : The inaugural G20 Energy Transition Working Group (ETWG) Meeting under India’s Presidency is currently underway in Bengaluru.

Overview :

• The G20 Energy Transition Working Group (ETWG) Meeting, the first under India’s Presidency, is being held in Bengaluru from February 5th to 7th, 2023.
• The meeting sees participation from about 150 delegates including representatives from G20 member countries and nine specially invited nations – Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, UAE and Spain.
• Prominent international organizations like The World Bank, Asian Development Bank, United Nations Development Program (UNDP), International Energy Agency (IEA), Clean Energy Ministerial (CEM), United Nations Environment Program (UNEP), International Solar Alliance (ISA) and others are also part of the meeting.
• The first ETWG meeting has identified six priority areas for focus. These are:

1. Bridging technology gaps for energy transition
2. Ensuring affordable financing for energy transition
3. Securing energy and diversifying supply chains
4. Promoting energy efficiency, industrial low carbon transitions and responsible consumption
5. Fuels for Future (3F)
6. Ensuring universal access to clean energy and developing just, affordable, and inclusive energy transition pathways.

• The Union Ministry of Power, the nodal Ministry for ETWG, will spearhead the discussions and negotiations on these focused priority areas.

India’s Path Towards Clean Energy :

• India has set ambitious targets to transition to clean energy, such as achieving 500GW of non-fossil fuel capacity, including 450 GW renewable energy (RE) capacity addition, and a 43% Renewable Energy (RE) purchase obligation by 2030.
• These targets are backed by various policies like the Energy Conservation (Amendment) Act, missions such as the National Green Hydrogen Mission , fiscal incentives like production-linked incentives, and market mechanisms like the upcoming national carbon market.
• Apart from policy, legal and regulatory instruments, the success of these commitments depends on technology and financial inclusiveness from the developed economies. Prime Minister Modi’s panchamrit pledge at the COP-26 conference in Glasgow serves as a guiding light for nation building and future governments.
• Given India’s focus on net-zero carbon emissions and innovative partnerships with international organisations and countries, the steps taken towards energy transition should pave the way for a greener future for the country.

Affordable Financing for Energy Transition :

• Emerging and developing economies are expected to contribute significantly to emissions growth in the coming decades unless substantial action is taken to transform their energy systems.
• As per current policies and announcements, emissions from emerging and developing economies are projected to grow by 5 gigatonnes (Gt) over the next two decades.
  • On the contrary, they are projected to decline by 2 Gt in advanced economies and stabilize in China.
• An extraordinary increase in clean energy spending is required to put countries on a pathway towards net-zero emissions.
• Clean energy investment in emerging and developing economies dropped by 8% to less than USD 150 billion in 2020, with only a slight recovery in 2021.
• Annual capital spending on clean energy in these economies needs to multiply by more than seven times, to above USD 1 trillion, to align the world on track to reach net-zero emissions by 2050.
• International public finance institutions must be empowered with a strong strategic mandate to finance clean energy transitions to improve the delivery of international climate finance.
• Such a surge can bring major economic and societal benefits, but it will require far-reaching efforts to improve the domestic environment for clean energy investment within these countries in combination with international efforts, especially by developed countries to accelerate inflows of capital.

Comprehensive Energy Transition :

• A comprehensive approach to transition to a low-energy economy involves decarbonizing, digitizing, and decentralizing among other measures. This includes:
  • Replacing fossil fuels with renewables with accelerated deployment of RE parks and battery storage facilities.
  • Reducing CO2 emissions by developing a market for carbon trade.
  • Removing carbon emissions through carbon sequestration.
  • Enhanced use of hydrogen, natural gas and hydro plays an integral role in the energy mix.
  • Enhancing energy efficiency measures such as robust implementation roadmap, improving the health of the distribution companies, developing the market for ancillary services and e-mobility.

• Given India’s scale and stage of development, efficient and thoughtful use of resources is essential.
  • India’s manufacturing prowess and technology leadership present an opportunity to leverage Make in India to turn India into a more self-sufficient economy and globally competitive export hub over time. Circular economy solutions should become a core feature of India’s future economy.
• As climate change accelerates, the likelihood of pandemics and extreme weather shocks will likely increase, making the need to build a resilient future critical. Resilience could involve selecting industries, technologies, or systems that help adapt to unexpected shocks or crises.
  • India can gradually reduce its exposure to commodity imports and foreign supply chains through distributed energy systems and the promotion of domestic manufacturing.
• Clean energy investments and activities can bring substantial economic opportunities and jobs in industries that are expected to flourish in the coming decades as energy transitions accelerate worldwide.
  • Therefore, clean energy transitions shall be people‐centred and inclusive, including actions that build equitable and sustainable models for universal access to modern energy.

Read more on India’s Net Zero Plan Document

Read previous AIR Spotlight articles here.